TinyMCE - no auto formatting using the_editor()?

Question

I'm embedding the_editor on a admin page:

<?php the_editor(get_option('options_name'),'options_name'); ?>  

And everything works fine, at least in back-end:

BUT on the front-end side I'm always getting inline output, there are no automatic paragraphs, breaks etc. They're just not being created. When I type them manually using HTML tags - it works.

Any ideas what's wrong?

Here's the full code so you will be able to copy&paste everything and check for your own. Does it work for you guys>

Admin page:

<form method="post" action="options.php">
<?php wp_nonce_field('update-options'); ?>
    <div id="poststuff">
        <div id="post-body">
            <div id="post-body-content">
                <div id="postrichdiv" class="postarea">
                    <?php the_editor(get_option('custom_editor_test'),'custom_editor_test'); ?>
                </div>
            </div>
        </div>
    </div>
<input type="hidden" name="action" value="update" />
<input type="hidden" name="page_options" value="custom_editor_test" />
<p class="submit">
<input type="submit" class="button-primary" value="<?php _e('Save Changes') ?>" />
</p>
</form>

Front-end (do_shortcode part is optional, by the way shortcodes are being rendered just fine in my case):

<?php echo do_shortcode(get_option('custom_editor_test')); ?>     

Answer 1

Try running wpautop on output of the text like so:

<?php echo do_shortcode( wpautop( get_option( 'custom_editor_test' ) ); ?>

Answer 2

Jared's answer will get you the auto paragraph tags. But a more complete solution might be to run the the_content filter on your text with apply_filters. This will run the following functions on your text: wptexturize, convert_smilies, convert_chars, wpautop, shortcode_unautop, prepend_attachment.

I believe it'll also run do_shortcodes for you. So that'll simplify things a lot.

<?php

    $content = get_option('custom_editor_test');
    echo apply_filters( 'the_content', $content );

?>

You might be able to do the get_option call right inside the apply_filter call. I didn't try it.